As we end 2022, the results for investments are coming in to compare. As we know, the markets had one of the worst years in 2022 with the S&P 500 down 18% and Nasdaq down over 25%. Is it possible to beat the market in a down year? Yes, as we have proof in the Monthly Income Plan produced by Get Rich Investments (getrichinvestments.com). In fact, we have beat the market for 4 years in a row. Our return in 2022 was a 35% total return!
Here is a recent headline I received in an email:
Berkshire crushes S&P in tough year for stocks. Berkshire Hathaway’s Class A shares ended 2022 with a 4.0% gain, outperforming the S&P 500’s 18.1% drop (with dividends) by 22.1 percentage points. It is the biggest margin of victory for Berkshire since its 23.2 percentage point win in 2007.
While we were clocking a 35% return, Warren Buffet only had a 4% return. For income, we had $26,695 in premium income and $1,685 in dividend income (over $28K total income) based on owning 100 shares of each position. This created an income yield of 32% for the year.
Yes, we had some big winners such as XOM with a 99% return and $3,900 total income. Other winners include BJ with a 67% return ($4.1K income) and CAH with a 54% return ($1.8K income). The portfolio did not have any losing positions in 2022.
So how do we post such a winning portfolio?
We have an outstanding stock selection process to identify stable stocks with dividends. We setup a covered call position on these stocks to create monthly income. This income is higher than your dividend income on blue chips. Secondly, we collect dividends on these stocks as an additional stream of income.
But you are thinking stocks still crashed in 2022 creating significant capital loss. To finalize our CC trade, we purchase a PUT option to protect our stock and capital from the market downside. This not only protects our capital but can be a third source of income. This is what saves our portfolio from wars, inflation and the Fed fighting congressional overspending.
Our portfolio returns were 49% in both 2021 and 2020. This is outstanding returns considering our focus is on creating monthly income for investors.
Do you want to create more income in 2023? Then, try our perpetual covered call service with a protective put to protect your capital.
Join the Monthly Income Plan today.